offer and acceptance

Question 1

an offer

Answer 1

• a statement of intent by the offeror to be legally bound by the terms of the offer if it is accepted by the offeree

Question 2

goods on shelves (invitation to treat)

Answer 2

• pharmaceutical society v boots

Question 3

goods in a shop window (invitation to treat)

Answer 3

• fisher v bell

Question 4

requests for tender (invitation to treat)

Answer 4

• letters written to IT suppliers is an invitation to treat, the quotation given is the offer

Question 5

statements of price (invitation to treat)

Answer 5

• a party indicating a price is an invitation to treat, not an offer
• harvey v facey

Question 6

auctions (invitation to treat)

Answer 6

• putting something up = ITT
• bidding = offer
• hammer brought down = acceptance

-british car auctions v wright

Question 7

advertisements (invitation to treat)

Answer 7

• partridge v crittenden

Question 8

advertisements making a unilateral offer

Answer 8

• only one person has an obligation
• carlill v carbolic smoke ball

Question 9

offer must be communicated to the offeree

Answer 9

• words don’t necessarily have to be used

Question 10

an offer can be made to one person or the whole world

Answer 10

• taylor v laird

Question 11

terms of the offer must be certain

Answer 11

• if the words are too vague, the parties might not know what they are contracting for
• guthing v lynn

Question 12

termination of offer

Answer 12

• offer is revoked and revocation is communicated to the offeree (routledge v grant)
• time for acceptance has passed
• reasonable time has passed (mo certain time limit)
• one of the contracting party dies

Question 13

acceptance must be communicated (rules of acceptance)

Answer 13

• must be a positive act
• not possible to accept by silence
• felthouse v bindley

Question 14

acceptance can be in any form (rules of acceptance)

Answer 14

• however, if the offer states that acceptance must be done in a specified way then it must be done in that way (yates v pulleyn)

Question 15

acceptance must be unconditional - counter offer (rules of acceptance)

Answer 15

• the acceptance must be on the same terms
• if terms are changed it will become a counter offer (hyde v wrench)

Question 16

enquiries do not count as rejection (rules of acceptance)

Answer 16

• if an offeree makes an enquiry, this won’t be a counter offer

Question 17

postal rule

Answer 17

• the acceptance is confirmed when posted in the letterbox
• adams v lindsell

Question 18

modern methods of acceptance

Answer 18

• the courts should simply have regard to the parties’ intentions, sound, business practice and a judgement as to where the risk should lie (brinkibon)